Indian Economy – UPSC Prelims PYQs

618 questions · 1995–2026 · answers as per the UPSC key · page 13 of 13

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Topics: Infrastructure & Industry (79)Human Development, Poverty & Employment Schemes (64)Agriculture & Rural Development (60)Banking & Financial Sector (55)External Sector & Balance Of Payments (49)Fiscal Policy & Budget (46)Financial Markets & Capital Markets (41)International Trade & WTO (41)International Institutions & Reports (39)National Income & Economic Growth (37)Monetary Policy & Money Supply (30)Digital Payments & Financial Inclusion (23)Economic Planning & Five-Year Plans (19)Taxation (19)Inflation & Price Indices (14)IT & Services Sector (2)
UPSC 1995 · Q31 · Indian Economy › Fiscal Policy & Budget · Save

Which of the following are among the non-plan expenditures of the Government of India? I. Defence expenditure II. Subsidies III. All expenditures linked with the previous plan periods IV. Interest payment

Choose the correct answer from the codes given below:

(a) I and II
(b) I and III
(c) II and IV
(d) I, II, III and IV
Show answer
Answer: (d) I, II, III and IV
UPSC 1995 · Q35 · Indian Economy › External Sector & Balance Of Payments · Save

Which of the following pairs are correctly matched? I. Increase in foreign exchange reserves ................. Monetary expansion II. Low import growth rate in India ...................... Recession in Indian Industry III. Euro issues ................ Shares held by Indian companies in European countries IV. Portfolio investment ............... Foreign institutional investors

Select the correct answer by using the following codes:

(a) I, II and IV
(b) III and IV
(c) I, II and III
(d) I, II, III and IV
Show answer
Answer: (a) I, II and IV
UPSC 1995 · Q38 · Indian Economy › Economic Planning & Five-Year Plans · Save

What is the annual growth rate aimed at in the Eighth Five-Year Plan?

(a) 5.6%
(b) 6%
(c) 6.5%
(d) 7%
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Answer: (a) 5.6%
UPSC 1995 · Q41 · Indian Economy › Financial Markets & Capital Markets · Save

Which one of the following is the largest mutual fund organisation in India?

(a) SBI Mutual Fund
(b) GIC Mutual Fund
(c) Industrial Bank Mutual Fund
(d) Unit Trust of India
Show answer
Answer: (d) Unit Trust of India
UPSC 1995 · Q46 · Indian Economy › Taxation · Save

Corporation tax

(a) is levied and appropriated by the States
(b) is levied by the Union and collected and appropriated by the States
(c) is levied by the Union and shared by the Union and the States
(d) is levied by the Union and belongs to it exclusively
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Answer: (d) is levied by the Union and belongs to it exclusively
UPSC 1995 · Q48 · Indian Economy › International Institutions & Reports · Save

Which of the following constitute the World Bank? I. International Bank for Reconstruction and Development II. International Finance Corporation III. International Development Association IV. International Monetary Fund

Choose the correct answer from the codes given below:

(a) I, II and III
(b) I and II
(c) III and IV
(d) I, II, III and IV
Show answer
Answer: (a) I, II and III
UPSC 1995 · Q55 · Indian Economy › Monetary Policy & Money Supply · Save

Which one of the following is not an instrument of selective credit control in India?

(a) Regulation of consumer credit
(b) Rationing of credit
(c) Margin requirements
(d) Variable reserve ratios
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Answer: (d) Variable reserve ratios
UPSC 1995 · Q59 · Indian Economy › Human Development, Poverty & Employment Schemes · Save

Which one of the following is true regarding the Jawahar Rozgar Yojana (JRY)?

(a) It was launched during the Prime Ministership of Indira Gandhi
(b) It aims at creating one million jobs annually
(c) The target group of JRY are the urban poor living below the poverty line
(d) Under the scheme 30% of the employment generated is reserved for women
Show answer
Answer: (d) Under the scheme 30% of the employment generated is reserved for women
UPSC 1995 · Q60 · Indian Economy › Monetary Policy & Money Supply · Save

Bank Rate implies the rate of interest

(a) paid by the Reserve Bank of India on the deposits of Commercial Banks
(b) charged by Banks on loans and advances
(c) payable on Bonds
(d) at which the Reserve Bank of India discounts the Bills of Exchange
Show answer
Answer: (d) at which the Reserve Bank of India discounts the Bills of Exchange
UPSC 1995 · Q64 · Indian Economy › Banking & Financial Sector · Save

The Narasimham Committee for Financial Sector Reforms has suggested reduction in

(a) SLR and CRR
(b) SLR, CRR and Priority Sector Financing
(c) SLR and financing to capital goods sector
(d) CRR, Priority Sector Financing and financing to capital goods sector
Show answer
Answer: (b) SLR, CRR and Priority Sector Financing
UPSC 1995 · Q76 · Indian Economy › Human Development, Poverty & Employment Schemes · Save

One of the reasons for India’s occupational structure remaining more or less the same over the years has been that

(a) investment pattern has been directed towards capital-intensive industries
(b) productivity in agriculture has been high enough to induce people to stay with agriculture
(c) ceilings on land holdings have enabled more people to own land and hence their preference to stay with agriculture
(d) people are largely unaware of the significance of transition from agriculture to industry for economic development
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Answer: (a) investment pattern has been directed towards capital-intensive industries
UPSC 1995 · Q79 · Indian Economy › International Trade & WTO · Save

Which of the following benefits are likely to accrue to India from the World Trade Organisation? I. India’s share in the world trade is to go up from the present 600 million US dollars to 5 billion US dollars by 2000 A.D. II. It will help boost exports of agricultural commodities from India. III. India’s share in the world trade is likely to triple by the year 2000 A.D.

Select the correct answer using the codes given below:

(a) I, II and III
(b) I and II
(c) I and III
(d) II and III
Show answer
Answer: (d) II and III
UPSC 1995 · Q93 · Indian Economy › National Income & Economic Growth · Save

The main reason for low growth rate in India, in spite of high rate of savings and capital formation is

(a) high birth rate
(b) low level of foreign aid
(c) low capital / output ratio
(d) high capital / output ratio
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Answer: (d) high capital / output ratio
UPSC 1995 · Q95 · Indian Economy › Economic Planning & Five-Year Plans · Save

The largest source of financing the public sector outlay of the Eighth Five-Year Plan comes from

(a) balance from current revenue
(b) contribution of public enterprises
(c) government borrowings
(d) deficit financing
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Answer: (d) deficit financing
UPSC 1995 · Q96 · Indian Economy › International Trade & WTO · Save

The new Exim Policy announced in 1992 is for a period of

(a) 3 years
(b) 4 years
(c) 7 years
(d) 5 years
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Answer: (d) 5 years
UPSC 1995 · Q97 · Indian Economy › Banking & Financial Sector · Save

Consider the following:

I. Industrial Finance Corporation of India II. Industrial Credit and Investment Corporation of India III. Industrial Development Bank of India IV. Unit Trust of India The correct sequence in which the above was established is

(a) I, II, IV, III
(b) I, III, II, IV
(c) IV, III, II, I
(d) I, IV, III, II
Show answer
Answer: (a) I, II, IV, III
UPSC 1995 · Q144 · Indian Economy › National Income & Economic Growth · Save

Consider the diagram given below: (Pie-chart showing family expenditure with segments labelled T: Transport, Ec: Education of children, H: Housing, C: Clothing, F: Food, S: Savings, O: Others.) From the diagram shown it would be right to conclude that

(a) the family spent more than half the income on food and clothing
(b) the amount saved by the family was too little
(c) the family had no health problems
(d) the family managed to meet all the essential expenses out of the income earned
Show answer
Answer: (d) the family managed to meet all the essential expenses out of the income earned
This question uses a table or figure from the original paper that is not reproduced here.
UPSC 1995 · Q146 · Indian Economy › Financial Markets & Capital Markets · Save

The price fluctuations of 4 scrips in a stock market in the four quarters of a year are shown in the table below. Four different investors had the following portfolios of investment in the four companies throughout the year: Investor 1: 10 of A, 20 of B, 30 of C and 40 of D Investor 2: 40 of A, 10 of B, 20 of C and 30 of D Investor 3: 30 of A, 40 of B, 10 of C and 20 of D Investor 4: 20 of A, 30 of B, 40 of C and 10 of D In the light of the above, which one of the following statements is correct?

(a) Investor 2 has made the best investment
(b) Investor 1 has made the best investment
(c) Investor 2 suffered a net loss during the year
(d) Investor 3 suffered a net loss during the year
Show answer
Answer: (b) Investor 1 has made the best investment
This question uses a table or figure from the original paper that is not reproduced here.